Subject:

Abstract:

The innovation performance of a firm within the capital goods sector in
Colombia is addressed using the System Dynamics method. The problem
that motivated this study can be stated as the lack of a comprehensive
theory that explains both the poor innovation performance of the Colombian
industry and its scarce level of the technological capabilities. Although there
are a number of attempts to explain the problem, their causal structures
are not fully specified and the results of these have not been evaluated with
regard to whether they altogether constitute a coherent and consistent
theory of the underlying causes explaining the observed dynamics.
Robledo’s (1997) research on the innovation process of the Colombian
capital goods industry is examined in detail. Robledo’s research is
formalized to investigate how well the theory accounts for the phenomena
its author set out to explain. We tested that the dynamics that Robledo
(1997) describes can be produced by the causal factors he postulates. In
particular, we demonstrate that given the intangible nature of capabilities
and its effect on the innovation process, the actors making up the system of
innovation maybe reluctant to invest in R&D. This fact highlights that
industrialists, academics and policy-makers need to do both acknowledge
that innovation is a learning process and estimate the intangible benefits of
R&D. In particular, academics and policy-makers should encourage the
industrialists to consider R&D investments at the core of its business
strategy.